TWS Order Types - (Mosaic) Webinar Notes

Overview

TWS Mosaic workspace has been designed for out-of-the-box usability – including the embedded Order Entry window that offers efficient pull down selections to define and transmit your trades. It is linked via the grouping icon to other Mosaic windows, so when you select a ticker in any color-linked window, the Order Entry is "loaded" with the underlying and ready to submit an order.



Order Entry Window

  • To start – select a ticker from your watchlist or portfolio to 'load' in the Order Entry window. You can also type the ticker symbol into the input field.
  • Click the Buy or Sell button and notice the window background changes to Blue for a Buy order and Red for a Sell.
  • Top row displays a held position (if any) and the current NBBO for selected ticker.
  • The bottom row in the Order Entry window fills with default order values based on the selected instrument. (i.e.: 100 shares for equity orders or a single contract for Options or Futures.)
  • Use the drop down selections or simply type in your desired values for the order.
    • Menus show default selections, use the arrowhead at bottom of each menu to expand for additional choices.
  • When satisfied with the order, click Submit. If you prefer, you can Save the order and when ready, choose to Submit/Transmit from the Activity Panel.
  • An order confirmation window will open, with the details to review and then transmit. If the confirmation message has been deactivated, you can still view the Margin requirements with the Check Margin Button.
  • A warning message will appear if your order exceeds certain default thresholds. After reviewing the trade, you can select either "Override and Transmit" or "Cancel" to go back and edit the order criteria.
    • Precautionary messages will display if your trade size exceeds 5 times the default size or is greater than USD 100,000 or equivalent in value. These precautionary values can be customized in Global Configuration > Pre-sets.
TIP: You can also right click on any ticker then choose Buy or Sell. When a color coded "Close" button appears, this indicates you have a position in the underlying and you can populate the Order Entry window with a closing order. Click on the close button to initiate a closing trade for the position. (The Blue button shows you would need to Buy to Close, a Red button indicates Sell to close.)


Activity Monitor

Working orders can be viewed in the Activity Monitor. Use the title bar drop down to filter the display from ALL orders to view just your Live trades, Fills or Cancelled orders.

Orders tab

The Activity Monitor Orders tab provides a running list of all live, canceled and completed orders.

  • Current day's trades display in the Activity monitor.
  • Order Status color lets you know at-a-glance what the status of your order is. Hover on the status icon for a quick tool tip description. Check the User Guide for expanded descriptions of each order status color.
  • Orders can be modified up to the time the order fills in the Activity Monitor.
    • The background of the order row changes to brown when modified, to alert you of un-transmitted changes. Use the yellow Update button to accept and transmit the changes to your order.
    • Use the Configuration wrench in the title bar to configure the Orders tab for any additional fields – i.e.: for a Trailing Stop you may want to add the Stop Price on the orders tab so you can view the Stop Price where that trade will trigger.

Trades tab

The Trade Log displays your daily executions including those completed during after-hours trading. Once an order has filled, the status changes to black and the position updates immediately in your Portfolio.

  • Expand to view individual fills with the "+" icon.

Summary tab

The Summary tab displays execution information by contract. Right click on the column headers to Customize the Layout.



Order Entry Advanced button

More advanced order attributes can be selected from the Advanced button.

Destination

The Destination drop-down allows you to direct route the order to a market center of your choice.

  • Select TPLUS2 stock Destination to purchase replacement shares to use against an options assignment and potentially preclude capital gains and a higher tax liability. (Permission must be enabled in Account Management)
  • Select IBALGO to activate the Algo Parameters box. IB Algos that apply to your selected instrument (Stock or options) will be available. Choose an Algo and the necessary input fields will open.

Order Attributes

Iceberg /Hidden

To hide large-size orders in the market you can choose an

  • Iceberg – and then input the portion of the order quantity to be displayed in the market
  • Hidden – for a large volume order to completely hide the submitted quantity from the market, select Hidden. Your order is submitted but evidence of the order is hidden from the market.
Order Reference

This field allows you to enter an alpha numeric reference title to trace the order through its lifecycle. This field will also display in the corresponding trade report.

Check Margin Button

Displays the margin impact of the trade you are considering.

Save Button

Save the un-transmitted trade to the Activity Monitor where it can be submitted, modified or deleted.



Attached Orders

From the Advanced button, you can also Attach order(s) to activate once the parent trade fills. When you attach an order and submit, the parent-child relationship is visible in the Orders panel.

The attached orders are considered child orders of the parent order and use the same order criteria as the parent. Child orders activate after the parent order fills. They are submitted one time with the parent order and will not continuously update.

Attach Stop Loss/Profit Taker/Bracket

Bracket Orders are designed to limit your loss and lock in a profit by "bracketing" an opening trade with two opposite-side orders – a profit target limit and a protective stop. The dependent attached (child) orders are created with the same order parameters as the primary (parent) order.

  • Create the parent trade, by defining quantity, price and time-in-force, then expand the Advanced button to attach Stop Loss or Profit Taking Limit order
  • Select Bracket and two opposite side orders are created – the Limit and Stop order prices are set based on the original order's limit price. Modify prices as needed.

The system recognizes that the parent and child orders are designed to work as a bundled group. Once the parent order is transmitted, all three orders are entered into the IB system, but only the parent order is active. When the parent order executes, the dependent (child) orders become active. When one of the child orders executes, the other order is cancelled. (OCA)

OCO – One Cancels Other

OCO order is a pair of orders stipulating that if one order executes, then the system will send a cancellation request for the other working trade

As an example: Bracket orders are submitted with an opening trade. If you already have a position and you can create two 'attached' exit trades, using the One Cancels Other (OCO) order type.

Create one exit trade in the Order Entry window. With the Advanced button selections, choose OCO to create another exit trade – so when one exit trade fills, the system will automatically send a cancel request for the other.

  • Use the "advanced button" within the One Cancels Other editor to apply an attribute.
  • Click "add order" to add another order to the One Cancels Other order group.
  • The On Fill: box instructs TWS what to do if an order in the group is partially filled. Use the drop down selector to choose the action.


Hedge Orders

From the Advanced button, Click Hedge to expand the panel then select the hedge type from the drop down selections.

Choose from Beta, FX, Pair Trade, and Delta Hedge for option orders. The hedging order will activate when the parent order fills.

  • Select Hedge to open the inline editor to choose the hedging order type from the drop-down list. Specify the hedging contract and other hedge order criteria.

Beta Hedge

Attach a Beta Hedge to a stock order, generally with an ETF. The system beta of the stock relative to the selected ETF is calculated and displayed next to the hedging contract. Specify the hedging contract, the order type (limit, market or relative), the time in force, the beta (modify system calculated default beta if desired).

FX Order

specify the forex pair, the order type (limit, market or relative), and the time in force. Upon the execution of the parent trade, the currency order will be activated to convert the alternate currency back to the account's base currency.

Pair Trade

Allows you to trade pairs of contracts and may be used to hedge one contract against another, generally in the same industry, or to offset a price difference between two contracts. Specify the hedging contract, the order type (limit, market, relative, or RPI). You provide the ratio between the main and hedging order. In the Hedging Ratio field, enter a value as a whole number or a decimal.

  • Hold your mouse over the Pair icon to see the estimated quantity of the hedging contract based on the entered ratio.


Shorting Stock

In the IB Trader Workstation, you don't have to press anything special to sell short in an account carried and cleared at IB. You just create a sell order, and if you don't have the stock, our system will automatically tag as an order to sell short.

  • The Shortable field in the Order Entry window uses colors to identify whether or not there is stock available for the customer to short it.
    • Light Green - At least 1000 shares are available.
    • Dark Green - The system is trying to locate shares.
    • Red - No shares are available for shorting
  • The Fee Rate shows the indicative Interest rate on borrowed shares.
  • A link is provided to the SLB Tool to view historical Borrow/Loan Fee and Rebate rates for the selected underlying.
  • Please note that the rates and the list of shortable stocks are indicative only and are subject to change. All short sale orders are subject to availability and approval by IB.
Note: for more information on shorting stock, please refer to the IB Securities Lending pages on the IB website.


Option Orders

To set up an option order, click the Option Chain button to select an option contract on the specified underlying.

The Option Chains window displays calls on the left and puts on the right, with the next three expiries and the seven strikes closest to the at-the-money strike. Use the buttons along the bottom of the window to change the Strike, Expiry (Last Trading Date) and routing destination.

Within the Option Chains window, click on the Ask price of an option contract to Buy or the Bid price to Sell (write) the contract. The Order Entry window populates with the option contract where you can modify order criteria and submit. The Option Strategy Builder button in lower right corner opens to allow you to create option spreads and combinations on the specified underlying.